During a regular inspection at the Extremo Norte mine, it was identified that the area around the main access and the escape route presented above-normal ground displacements
Nexa Resources S.A. (“Nexa Resources” or “Nexa” or the “Company”) (NYSE and TSX Symbol: “NEXA”) informs the temporary suspension of the Extremo Norte underground mine activities in Vazante. The Vazante operation comprises two underground zinc-lead–silver mines, the Vazante and the Extremo Norte.
During a regular inspection at the Extremo Norte mine, it was identified that the area around the main access and the escape route presented above-normal ground displacements. The Extremo Norte mine requires dewatering the aquifer for its operation, which leads to depressurization and may cause local disturbances in the rock mass around the mine. As a preventive measure, activities in this area have been temporarily suspended. No work accidents or environmental impacts have been reported.
The Nexa team, supported by outside experts, is conducting a detailed analysis of the geological and geotechnical conditions in order to ensure the safety of workers and the resumption of the operational activities in the Extremo Norte mine, which we expected may last for the next two to three months.
Production at 1Q21 in Vazante should not be materially affected. We have managed to mitigate the decrease in production in Extremo Norte by increasing throughput at the Vazante mine.
Vazante’s 2021 zinc production guidance has been revised to 130-140kt versus 140-150kt. Zinc average grade is expected to decrease to 9.88% compared to a previous estimate of 10.58% for the year. The lead range of 1.0-1.5kt and silver production range of 345-395koz remain unchanged. Cash cost guidance is under review. We will continue to monitor and assess the situation as it develops, including with respect to any impacts on our previously issued guidance.
Source: Company Press Release